CDS could be key to restructuring of CIT

The fate of CIT Group could soon be determined by the troubled lender's creditors, who hold $30 billion in the company's debt. How many of those creditors bought credit default swaps to insure themselves against a CIT default might determine whether enough of them agree to a restructuring. If the restructuring fails, CIT will automatically apply for bankruptcy protection, and CDS holders will receive 100 cents on the dollar for the debt they hold.

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